How does the use of Anago's trademarks, as described in Item 13, relate to the franchisee's obligations regarding advertising and marketing, as potentially outlined in Item 9 and Item 11?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Your rights to use the Proprietary Marks are derived solely from your Subfranchise Rights Agreement and are limited to the operation of your Anago Subfranchise Rights Business under your Subfranchise Rights Agreement and all applicable standards, specifications, and operating procedures we require during the Term. Any unauthorized use of the Proprietary Property including the Proprietary Marks is a breach of your Subfranchise Rights Agreement and an infringement of our and ACS'srights in and to the Proprietary Marks. "Proprietary Property" refers to the Proprietary Marks, Confidential Information (as defined in Item 14) and copyrighted information or us and our affiliates that you are entitled to use under the Subfranchise Rights Agreement.
Your use of the Proprietary Property and any goodwill established by your use inures to our exclusive benefit. The Subfranchise Rights Agreement does not confer any goodwill or other interest in the Proprietary Property to you, other than the right to operate an Anago Subfranchise Rights Business in compliance with the Subfranchise Rights Agreement in the Area. All provisions of the
SECTION 7.1 LOCAL ADVERTISING.
You must submit to Us for approval, all materials to be used for Local Advertising of Your Anago Unit Franchise, unless they have been approved before or they consist only of materials We provided. All materials on which the Proprietary Marks are used must include the applicable designation service mark SM, trademark TM, registered trademark ® or copyright ©, or any other designation We specify. If You have not received the written or oral disapproval of materials submitted within 10 days from the date We received the materials, the materials are deemed approved. We may require You to withdraw and/or discontinue the use of any promotional materials or advertising, even if previously approved, if in Our judgment, the materials or advertising may injure or be harmful to the System. We must make this requirement in writing, and You have 5 days after receipt of notice to withdraw and discontinue use of the materials or advertising. The submission of advertising to Us for approval does not affect Your right to determine the prices at which You sell Your products or services. You may independently, and entirely separate from any advertising You conduct for Your Anago Unit Franchise, advertise Your availability to perform cleaning, janitorial and other services for other non-Anago clients, but You may not use, refer to, or incorporate into any such advertising the Anago Proprietary Marks or System or Your position as an Anago franchisee. No advertising for such services shall satisfy Your advertising obligations under this Agreement.
SECTION 7.2 ADVERTISING FUND.
We have established an advertising and marketing fund for Anago Unit Franchises (the "Fund"). We and/or AFI will have the sole discretion over the concepts, materials, media, type,
nature, scope, frequency, place, form, copy, layout and content of all national, regional and local advertising paid out of the Fund. The Fund will be maintained and administered by Us, AFI, or Our Designee as follows:
You will be subject to an annual minimum Client Marketing Spend. To comply with the Client Marketing Spend, you will be required to spend at least $50,000 per calendar year on marketing Anago services to the existing and potential clients in the Area and provide us with
satisfactory proof of these expenditures in the form requested by us. If you fail to meet the above requirements, you must pay us the difference between the required Client Marketing Spend and the portion of the Client Marketing Spend you actually spent during the applicable calendar year. We may use such amounts for any purpose in our sole discretion. The Client Marketing Spend requirement will be prorated for each partial calendar year of the term of the Subfranchise Rights Agreement. You must not use any false or misleading advertising in the solicitation of prospective Unit Franchisees.
All advertising must receive our written approval before its use and you will comply with all laws regulating the content and use of advertising including registration with, and approval by, applicable state franchise regulators. (Subsection 3.1 of the Subfranchise Rights Agreement) We may require that a "tag line" stating that franchise and/or career opportunities are available, be included in any advertising.
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a franchisee's rights to use Anago's trademarks are strictly defined by the Subfranchise Rights Agreement. This agreement limits the franchisee's use of trademarks to operating their Anago Subfranchise Rights Business, adhering to all standards, specifications, and operating procedures. Any unauthorized use of these trademarks constitutes a breach of the agreement and infringes upon Anago's rights. The goodwill generated from the franchisee's use of the trademarks benefits Anago exclusively, and the franchisee gains no independent interest in the trademarks beyond the right to operate under the agreement. Item 9, as referenced in the provided excerpts, generally outlines the franchisee's obligations, which would include adhering to trademark usage guidelines. Item 11 details advertising requirements.
Anago franchisees must get approval for all local advertising materials, ensuring that any use of Anago's proprietary marks includes the appropriate trademark designations (SM, TM, ®, or ©). Anago retains the right to demand the withdrawal of any promotional materials, even if previously approved, if they are deemed harmful to the Anago system. While franchisees can advertise cleaning services independently of their Anago franchise, they are prohibited from using Anago's trademarks or referencing their position as an Anago franchisee in such external advertising. This ensures that the Anago brand remains distinct and protected.
Furthermore, Anago has established an advertising and marketing fund, over which Anago or its affiliates have sole discretion regarding the content and execution of advertising campaigns. Franchisees are subject to an annual minimum Client Marketing Spend, requiring them to spend at least $50,000 per calendar year on marketing Anago services. Franchisees must provide proof of these expenditures. Failure to meet this spending requirement may result in the franchisee paying Anago the difference, which Anago can use at its discretion. All advertising, including electronic media, requires Anago's prior written approval, ensuring compliance with advertising laws and regulations. This comprehensive oversight ensures that all advertising activities align with Anago's brand standards and legal requirements.